Trends, Challenges, and Opportunities in the Carpets Markets of India and the USA

Overview

Carpets and rugs have become prominent choices for enhancing the aesthetics of both residential and commercial spaces throughout India and the USA. According to research, The United States is the largest importer of carpets and rugs in the world. The US carpet and rug market is expected to reach USD 15 billion by 2027, growing at a CAGR of 4.5% from 2022 to 2027. Apparently, the burgeoning demand for these home flooring products can be attributed to several key factors, which encompass the following:

1. Urbanization: As urban areas expand, the demand for carpets and rugs experiences a significant surge. These versatile flooring options are favored for their ability to transform living and working spaces into cozy and inviting environments.
2. Rising construction: The construction industry plays a pivotal role in propelling the growth of carpets and rugs. They are considered essential elements in the interior design of new residential and non-residential structures, contributing to the overall ambiance and comfort.
3. Middle-class population: With a rapidly expanding middle-class population, there is an escalating desire for well-appointed homes. Rugs are key components in the quest to create comfortable and stylish living spaces.
4. Furniture houses demand: The demand for furniture houses that offer comprehensive solutions for interior decor is on the rise. Carpets serve as crucial additions to these setups, accentuating the overall appeal of the furnishings.
5. Lifestyle changes: Evolving lifestyles and preferences have led to a growing appreciation for carpets and rugs as indispensable home decor items. They not only provide comfort but also reflect the unique style and taste of homeowners.

It's important to note that in the Indian market, the emphasis is more on decorative and ornamental rugs rather than traditional carpet flooring. This shift in preference underscores the desire to infuse spaces with character and individuality.

In addition to these factors, the construction industry, both residential and non-residential, continues to contribute significantly to the growth of the carpets and rugs market. Carpets and rugs are not just viewed as floor coverings but as elements that enhance structural aesthetics by introducing comfort, warmth, and cushioning.

A diverse range of rugs is prevalent in the market, tailored to suit specific needs and room types. These include bedroom rugs, living room rugs, shag rugs, office rugs, wool rugs, and braided rugs, each catering to distinct design and functional requirements.

Furthermore, innovations in the industry have led to the emergence of carpets made from materials like jute, linen, hemp, and blends achieved through advanced technologies. These innovations are keeping the market dynamic and in sync with changing consumer preferences.

As environmental concerns continue to gain prominence, consumers are increasingly showing interest in carpets and rugs crafted from recycled raw materials, waste products, and discarded materials. This shift towards sustainability is a notable trend in the market, reflecting a growing awareness of the need for eco-friendly and responsible choices in home decor.

The carpets and rugs market in India and USA are not only driven by practical considerations but also by the aspiration to create stylish and environmentally conscious living spaces that resonate with the evolving tastes and preferences of the modern consumer.

Scope of Research (India and the USA)

The Indian market for carpets and rugs is a dynamic and fiercely competitive arena, characterized by its extensive diversity. With a staggering presence of more than 2000 manufacturers, the market is brimming with a kaleidoscope of designs, colors, motifs, and exquisite floral patterns adorning the carpets crafted in India. In this spirited marketplace, manufacturers are leaving no stone unturned as they channel their investments into pioneering technology and rigorous research. This commitment to innovation and advancement serves as their competitive edge, ensuring that they can offer a rich variety to discerning consumers.

India and the United States are two of the largest markets for rugs in the world. India is the second-largest producer of carpets in the world, after China. The Indian market is expected to reach USD 10 billion by 2027, growing at a CAGR of 6.5% from 2022 to 2027. The United States is the largest importer of carpets and rugs in the world. The US market is expected to reach USD 15 billion by 2027, growing at a CAGR of 4.5% from 2022 to 2027.

Consequently, the talented Indian weavers find themselves in a constant state of evolution. They continuously refine their design aesthetics and weaving techniques to align with the evolving tastes and lifestyles of contemporary consumers. This adaptability is a testament to their dedication to delivering exceptional products that resonate with the market's ever-changing demands.

One notable example of this dedication is Saif Carpets, which recently introduced the Desco and braided rugs. What sets these rugs apart is their remarkable eco-friendliness. They are not only environmentally conscious but also possess the valuable attributes of water resistance and ease of maintenance. A simple wipe with a cloth is all that's needed to keep these rugs looking pristine, making them a compelling choice for consumers who seek both style and practicality.

Significance and relevance of the carpet business in India and the USA

There are several reasons why carpets are important and relevant in both India and the US:

India:

• The carpet industry is a major source of employment for rural artisans in India. Over 2 million people are directly or indirectly employed in the carpet industry in India. 
• The carpet industry plays an important role in India's export earnings. In 2021-22, India exported carpets and rugs worth USD 1.51 billion.
• Indian carpets are known for their high quality and intricate designs. They are exported to all over the world, including the USA, Europe, and the Middle East.
• Indian rugs are an important part of Indian culture and heritage. They are used in homes, offices, and temples all over the country. 

USA:

• The carpet industry is a major component of the construction industry in the USA. Carpets and rugs are used in a wide range of residential and commercial buildings, including homes, offices, hotels, and restaurants.
• The carpet industry plays an important role in the US retail sector. Rugs are sold through a variety of channels, including furniture stores, home improvement stores, and online retailers.
• The carpet industry provides jobs for millions of people in the USA. According to the Carpet and Rug Institute, the carpet industry supports over 250,000 direct jobs and over 1 million indirect jobs in the USA.
• Carpets and rugs play an important role in American homes. They provide comfort, warmth, and style to living spaces.

Background and History

In this subsection, we’ll trace the history of the carpet business sequentially in India and USA.

Rise of the carpet industry in India

The rich history of carpet weaving in India finds its roots in the opulent era of the Mughal reign during the 16th century. Babur, who lamented the lack of luxuries in India compared to the lavish Persian goods, including Persian carpets, decided to introduce the art of carpet weaving to the subcontinent. To realize this vision, Akbar, one of the Mughal emperors, brought skilled carpet weavers from Persia to India and instructed them to train Indian prisoners in this intricate craft. This initiative led to the establishment of prominent carpet weaving centers in Agra, Delhi, and Lahore in 1580 AD, fostering the production of exquisite carpets in India.

With the passage of time, as more artisans received training in the art of carpet weaving, the craft began to flourish and evolve. The original Persian designs were adapted to suit the royal preferences and Indian sensibilities. These modifications introduced Indian motifs, showcasing scenes from court life, depictions of animals, floral and plant patterns, scenic landscapes, and much more.

Artisans demonstrated remarkable versatility by utilizing a diverse range of materials, including silk, velvet, wool, and even cashmere. What set Indian carpets apart was their commitment to using only natural vegetable dyes to infuse vibrant colors into their creations. Notably, each carpet boasted a unique and individual design, ensuring that no two carpets bore any resemblance to one another.

In the opulent environs of the Mughal courts, some of the most exquisite carpets were displayed. These carpets, often crafted from pure silk, were renowned for their meticulous detail, featuring an astonishing 4224 knots per square inch. This level of artistry and craftsmanship cemented India's reputation as a hub for the creation of luxurious and distinctive carpets.

Fast forward to the present day, and India has emerged as one of the world's foremost producers and exporters of handmade carpets. Remarkably, an estimated 75–85 percent of carpets produced in India are destined for international markets. This widespread global appeal is a testament to the unparalleled quality and exceptional design of handcrafted Indian carpets. These carpets continue to be cherished worldwide for their artistry, history, and enduring elegance.

Significant Milestones and Changes in the Indian Carpet Industry

1. 16th century: The Mughals introduced Persian carpet weaving techniques to India. Indian carpets become known for their high quality and intricate designs.
2. 18th century: The British East India Company began exporting Indian carpets to Europe. Indian carpets became a popular status symbol among the European aristocracy.
3. 1947: India gains independence. The Indian government provides support to the carpet industry through various initiatives, such as export subsidies and training programs.
4. 1970s: Power looms are introduced to the Indian carpet industry, leading to a significant increase in production capacity.
5. 1990s: The Indian carpet industry began to export to new markets, such as the United States and the Middle East.
6.  2000s: The Indian carpet industry has become increasingly competitive. Indian carpet manufacturers have begun to focus on product innovation and design differentiation.

The inception of the carpet industry in the USA

The emergence of the first U.S. carpet industry occurred towards the end of the eighteenth century. Skillful weavers utilized handloom technology to craft carpets and rugs. Like their counterparts in the textile industry, American carpet manufacturers faced the challenge of competing against imported goods. In 1816, Congress extended its support to the burgeoning U.S. industry by imposing protective tariffs. In the 1820s, these protective measures were further heightened. In an 1834 industry survey conducted by Timothy Pitkin, there were 20 carpet mills producing around 1 million square yards. Fast forward to 1850, a government survey uncovered 116 mills churning out 8 million square yards of carpets and rugs, employing over 6,000 workers. In just two decades, the number of U.S. carpet mills had grown to 215, producing more than 20 million square yards and employing 12,000 individuals.

Throughout the nineteenth century, Americans turned to carpets to conceal the poor quality of softwood floors in their homes. As one commentator remarked in 1872, the widespread use of carpets was necessitated by the subpar quality of house floors. Fast forward to the mid-nineteenth century, the introduction of varnished hardwood floors led to a decrease in demand for wall-to-wall carpets and a surge in the popularity of smaller rugs for decorative purposes.

1. The First Half of the Twentieth Century: After 1870, improvements in power loom technology allowed manufacturers to produce cost-effective alternatives to higher-quality handloom weaves. This shift resulted in a drop in the production of cheaper carpets as consumers sought higher quality at affordable prices. By the early twentieth century, large rugs had become commonplace in upper-middle-class American households, with sales soaring to over 83 million square yards by 1923. Companies such as Bigelow-Hartford began producing lavish catalogs and directly marketing products to consumers, bypassing traditional commission agents. Despite the apparent success, the industry faced challenges. Sales began declining even before the Great Depression, and the economic upheaval of the 1930s exacerbated the situation. Manufacturers like Bigelow and Mohawk struggled to maintain sales figures. Most mills switched to war production during World War II, providing some relief to the industry. However, just after the war, there was a brief surge in the industry, with sales reaching nearly 90 million square yards in 1948, only to plummet soon after. These seemingly robust 1948 sales figures were still meager compared to those from a quarter of a century earlier. When viewed in the context of population growth, sales had actually decreased. Furthermore, sales continued to fall through the early 1950s.
2. The Emergence of the Second U.S. Carpet Industry: In 1950, the U.S. carpet industry had three distinct characteristics: carpets were woven on power looms using wool in mills located in the northeastern United States. However, within a single decade, each of these fundamental elements underwent a profound transformation. By 1960, most carpets in the United States were being produced using tufting machines and synthetic fibers like nylon in factories situated in the southeastern United States, particularly around Dalton, Georgia. In the 1950s, woven carpet manufacturers tried various strategies to boost sales. Some experimented with selling carpets on credit through retailers, while others focused on style and elegance. Although these advertising campaigns raised awareness and desire for carpets, they did little to change the industry's fortunes.
3. Tufted Textiles Take Center Stage: During the same decade, a new southern industry emerged, producing a more affordable substitute for woven carpets – tufted carpets and rugs. Sales of these tufted products surged from nearly nothing in the late 1940s to over 100 million square yards by 1958. The roots of this burgeoning carpet industry in the South can be traced to a combination of deliberate actions and historical circumstances.

Significant Milestones and Changes in the US Carpet Industry

• 1791: The first carpet mill in the USA was established.
• 1839: Erastus Bigelow invented the power loom, which led to a significant increase in carpet production.
• Late 19th century: The USA became a major producer of carpets.
• Early 20th century: The carpet industry in the USA declined due to the Great Depression and the Second World War.
• After World War II: The carpet industry in the USA experienced a resurgence due to the introduction of synthetic fibers.
• Recent decades: The carpet industry in the USA is consolidated. A few large manufacturers now control the majority of the market.

Market Size and Growth

Carpets and rugs hold a significant place in the realm of home decor for both residential and commercial spaces across India. Their demand is propelled by several key factors, including urbanization, the burgeoning construction sector, the rapid expansion of the middle-class populace, a growing desire for well-furnished homes, shifting lifestyles, and increased investments in home furnishings and interiors. Notably, the market in India is characterized by a higher demand for decorative and ornamental rugs over traditional carpet flooring.

The robust growth of the construction industry is a substantial driver for the carpets and rugs market, influencing both residential and non-residential segments. Carpets and rugs are primarily viewed as materials that enhance the ambiance of a space by introducing elements of comfort, warmth, and cushioning. The market showcases a wide array of rug types, such as bedroom rugs, living room rugs, shag rugs, office rugs, wool rugs, braided rugs, and other versatile flooring options. Furthermore, there is a growing trend in the market for carpets made from innovative materials like jute, linen, hemp, and blended materials, often incorporating advanced technologies. Given the mounting concern for environmental issues, consumers are increasingly expressing interest in carpets and rugs crafted from recycled raw materials and repurposed products.

Carpets and Rugs Market Trends in India

This section highlights the prominent market trends shaping the Indian Carpets and rugs Market based on our research:

1. India's Leadership in Hand-made Carpets

India currently stands as a global frontrunner in the production of handmade carpets, both in terms of volume and value. The country's rich heritage in crafting handmade carpets is globally renowned, and India contributes significantly to the world's carpet exports. Impressively, a staggering 90% of the carpets manufactured in India find their way to international markets. As of April-November 2019, India's exports of handmade carpets reached INR 64,407.19 crore (USD 916.15 million). These exquisite carpets from India have found their way to over 70 countries worldwide, with major importers including the United States, Germany, Canada, the United Kingdom, Australia, South Africa, France, Italy, Brazil, and more. With globalization opening up new horizons, the Indian carpet market is poised to explore fresh opportunities in emerging economies.

2. Woven Carpets' Dominance and Rising Demand for Tufted Carpets

The tradition of carpet weaving in India has roots tracing back to 16th-century Persian carpets and rugs. These carpets, predominantly hand-knotted, feature an array of captivating motifs in their designs. The Indian carpet industry is characterized by its rural base and labour-intensive craftsmanship. Indian silk carpets, celebrated for their authenticity, vibrant colors, superior quality, unique designs, and durability, enjoy favor both among buyers and weavers.

However, the market is witnessing a shift in consumer preferences towards tufted carpets, primarily due to their affordability and the utilization of synthetic materials, making the production process less labor-intensive. Customers increasingly seek carpets that are washable and budget-friendly.

Carpets and Rugs Market Trends in the USA

According to recent market research conducted by the CMI Market Research Team, the US carpet and rugs market is poised for steady growth, with a projected CAGR of 4.3% from 2023 to 2032. In 2022, the market size was estimated at USD 33.29 Billion, and by 2030, it is expected to reach USD 50.56 Billion.

The US Carpets and rug market encompasses the entire industry involved in manufacturing, distribution, and sales of various floor coverings made from a wide range of materials, including fabrics, fibers, and synthetic materials. These products are designed to enhance the aesthetics, comfort, and functionality of both residential and commercial spaces.

Operating within a competitive landscape, this market is influenced by factors such as evolving consumer preferences, technological advancements, and sustainability concerns. Recent trends indicate a growing demand for eco-friendly solutions, increased online shopping, integration of modern technology, and customization to meet consumer needs in terms of durability, maintenance, and performance.

Key Drivers of Growth in the US Carpets and Rugs Market

The US Carpets and Rugs market presents significant growth opportunities driven by the following factors:

1. Eco-friendly focus: There's a rising demand for sustainable and environmentally friendly products in this market. Consumers are increasingly conscious of the ecological impact and are seeking carpets and rugs made from recycled materials or natural fibers.
2. Technological innovations: Technological advancements are pushing the market forward, introducing innovative products with improved manufacturing methods and smart features. These innovations enhance the durability, stain resistance, ease of cleaning, and even connectivity options, meeting the evolving needs of consumers. 
3. Online retail boom: The growth of online retail and e-commerce platforms has created substantial prospects for the carpets & rugs market. Consumers are increasingly comfortable purchasing these products online, and businesses can leverage digital platforms to reach a broader client base and offer a diverse range of options. 
4. Personalized touch: Customization is gaining popularity in the market. Consumers want carpets and rugs that can be tailored to their specific design, color, pattern, or size requirements. Manufacturers and retailers can capitalize on this trend by offering customization options to cater to various customer preferences. 
5. Focus on health and well-being: Consumers are prioritizing the creation of healthy and safe living spaces, leading to a higher demand for allergen-free carpets and rugs with low volatile organic compounds (VOCs). Companies can take advantage of this opportunity by developing solutions that improve indoor air quality while contributing to overall well-being. 
6. Commercial sector expansion: The Carpets and Rugs market in the US is experiencing growth in the commercial sector, including offices, hotels, restaurants, and retail spaces. These sectors require carpets and rugs to enhance the ambiance, acoustics, and safety of their spaces, creating favorable prospects for manufacturers and suppliers to meet the growing demand in these segments.

Mergers and Acquisitions in the US Carpet and Rug Market

The US carpet and rug market has witnessed several mergers and acquisitions in recent years, with companies aiming to expand their market presence, enhance their product offerings, and improve profitability. Notable examples include:

1. In 2021, Mohawk Industries acquired the rugs and carpets business of KAI Group, expanding its global reach and strengthening its position in the US carpet and rug market.
2. In 2019, Shaw Industries Group acquired Engineered Floors, broadening its product portfolio and manufacturing capabilities.
3. In 2018, Beaulieu International Group acquired Marlings, expanding its product offerings and strengthening its position in the US carpet and rug market.
4. In 2018, Interface acquired Nora Systems, diversifying its product range to cater to a wide range of customer needs.
5. In 2017, Dixie Group acquired Atlas Carpet Mills, enhancing its capabilities in the commercial sector.
6. In 2015, Mohawk Industries acquired IVC Group, expanding its product portfolio and access to innovative flooring technologies.

These mergers and acquisitions have allowed companies to diversify, strengthen their presence, and capitalize on growth opportunities in the US carpet and rug market.

Major players in the carpet industry in India

The following are some of the major players in the carpet industry in India:

1. Jaipur Rugs

In the early 1970s, Nand Kishore Chaudhary's father operated a small shoe store in Churu, a district in Rajasthan. However, when Nand Kishore joined the family business in 1975 after completing his graduation, the venture was struggling and incurring losses. Faced with this situation, he made the bold decision to close the shop. Instead of accepting a job offer at a bank, he continued his quest for more promising opportunities, driven by a vision of establishing his own business.

2. Carpet Planet

Coming from Bhadohi, India's renowned carpet capital and situated in Delhi, Carpet Planet stands as a testament to generations of craftsmanship and dedication to the art of carpet and rug weaving. Their mission is simple yet profound: to offer a wide array of hand-tufted and hand-crafted luxurious rugs and carpets that seamlessly blend affordability with uncompromising quality.

They offer a vast selection of styles, colors, textures, and sizes, ensuring that every homeowner can find the perfect piece to adorn their living space. They aspire to infuse the rich tapestry of Indian heritage into the very fabric of your home. Their handcrafted carpets are a testament to the meticulous work of experienced Indian artisans, weaving stories into every thread with a deep-rooted commitment and a touch of Indian culture.

Their commitment to our customers extends beyond their initial purchase. They understand that quality is not just about the product but also the aftercare. Specializing in top-grade rugs and carpets designed to last for generations, Carpet Planet offers a comprehensive product line. Additionally, we provide top-notch carpet cleaning and repair services, available nationwide (India).

At Carpet Planet, you'll discover a world of possibilities, including artificial grass, vertical gardens, wall-to-wall carpeting, and blinds. Their experts work tirelessly to meet all consumer needs, whether they're seeking a new addition to the home, require professional cleaning and repairs for existing carpet, or desire a high-quality replacement for artificial grass.

With Carpet Planet, the transformation of your home is limited only by imagination. Their legacy of craftsmanship and quality is here to serve every consumer, bringing a touch of elegance and Indian heritage into your everyday living spaces.

3. The Rug Republic

Aditya Gupta's interest in the carpets and rugs industry dates back to his childhood. His parents, JK Gupta, and Meenakshi Gupta, started crafting carpets at their home in Meerut in 1983 when Aditya was just in Class X. Eight years later, after completing his education at IIT Roorkee and FMS Delhi, Aditya, along with his brother Ashish Gupta, joined the family business, which became known as Sharda Exports.

Their journey took a global turn in 1991 when they had the opportunity to showcase their collection in Germany, marking their entry into the international market. Notable clients such as IKEA and Habitat were among their first international customers. In 2013, the company underwent a significant transformation by rebranding itself as The Rug Republic, recognizing the potential for branding within the handmade rugs industry in India. The Rug Republic now manufactures five lakh carpets annually and exports to 85 countries across the globe, sustaining an annual growth rate of around 20 percent.

4. Kaleen India

Radhe Rathi, previously involved in his family's textile business and handling its export division until 1994, made a significant career shift due to family differences. While residing in the US and exploring opportunities beyond textiles, he stumbled upon a trading project in the rug market. His background in textiles provided a solid foundation to explore this new venture, and he identified the stability and sustainability offered by the carpet industry compared to garments with shorter shelf lives.

In 1996, Radhe established Kaleen India, initially focusing on trading rugs in overseas markets before gradually transitioning into manufacturing. In 2000, his younger brother, Monty Rathi, joined the business, and they set up manufacturing units in Panipat, Mirzapur, and Bikaner. Today, Radhe manages business operations between the US and India, and the Kaleen Group has recorded a turnover of Rs 250 crore in FY20 through its subsidiaries. The group has a strong presence in both India and the US.

5. Saraswati Global

In the 1970s, Mahesh Choudhary capitalized on the growing popularity of Indian rugs and founded Saraswati Global Pvt. Ltd. in India, which is now recognized as a leading manufacturer of carpets in the country. Exporting to around 20 countries, Mahesh started as a contract manufacturer for export firms in Rajasthan. After nearly a decade, his understanding of the industry led him to establish Saraswati Global, focusing on international markets.

Starting with the German market due to ease of export from India to Germany, the company gradually expanded to other countries. Today, the US is its largest market, followed by the UK, Europe, and the Middle East. In FY20-21, Saraswati Global Private Ltd recorded revenue of Rs 22 crore, solidifying its position in the global carpet industry.

6. Yak Carpet

Yak Carpet, based in Delhi, is an established player in the carpet industry with exports to approximately 30 countries. Founded in 1976 by Harash Talwar, the company manufactures and exports carpets worldwide. Harash's daughter, Sakshi Talwar, now leads the brand as Director of E-commerce and Overseas Operations. Yak Carpet has a history of over 42 years, and it was established after Harash's return from Germany, where he worked in the carpet industry and developed a deep appreciation for the art and craftsmanship involved in carpet making.

Upon his return to India, Harash founded Yak Carpet with the aim of empowering Indian weavers and artisans and introducing Indian craftsmanship to a global audience. Today, Yak Carpet continues to thrive in the global market, offering its meticulously crafted carpets to customers in Australia, the UK, the US, and various other countries.

Consumer Trends and Preferences

The carpet industry in India stands as one of the oldest and most well-established sectors, employing over two million skilled weavers. This thriving industry has a rich history dating back to the 16th century. India proudly holds the position of one of the world's largest producers and exporters of handmade carpets. In fact, a staggering 90 percent of India's carpet production finds its way to international markets. Indian carpets are celebrated for their exquisite designs, vibrant colors, and exceptional quality, which continue to drive high demand in the global market.

Historical roots and evolution

Carpet weaving made its debut in India under the patronage of the Mughals. During their reign, some of the most magnificent and splendid carpets were woven, initially attracting royalty, nobility, and the affluent class as their patrons. As time progressed, carpets made their way into the households of common people and the business community. Weavers have since evolved into true artists, crafting carpets that not only feature exotic colors and designs but also add an artistic flair to Indian carpets.

Post-Independence expansion

Post-Independence, the Indian carpet industry witnessed rapid growth, with a significant surge in overseas demand during the 1970s. This upswing led to a remarkable increase in carpet exports, skyrocketing from around INR 110 million in 1970-71 to an impressive INR 36 billion in 2006-07. However, it's worth noting that carpet exports faced a downturn after 2007-08 due to the global economic recession.

Key carpet weaving centers

While there were only a few carpet weaving centers in the past, they have gradually spread across northern India. This expansion can be attributed to the availability of resources and historical factors. Some major carpet manufacturing hubs include Agra, Jaipur, Srinagar, Danapur, Bhadohi, and, in recent decades, Panipat has emerged as a prominent center for carpet production.

Diverse Range of Hand-Made Carpets

India offers a wide variety of hand-made carpets, including:

• Pure Silk Carpets
• Tufted Woollen Carpets
• Hand-Knotted Woollen Carpets
• Staple and Synthetic Carpets
• Gabbe Woollen Carpets
• Hand-Made Woollen Dhurries
• Chain Stitch Rugs

Each type of carpet boasts its own unique patterns, significance, and traditional appeal, catering to various customer preferences and needs.

Key Players and Global Markets

Carpets and rugs are highly valued for their aesthetic appeal and practical functionality in homes, offices, and public institutions. They provide a protective layer for floors, especially in colder regions where they offer warmth. Traditionally, developed countries had the highest demand for carpets, with the United States, the United Kingdom, Germany, Canada, France, and Japan leading in carpet imports from India.

The United States and Germany are two dominant players in the carpet import market, although with globalization, new opportunities are opening up for carpet exports to various countries. In the German market, there is a high demand for low to medium-quality (Persian and Nepali) carpets, while the demand for high-quality carpets is reportedly on the decline. In the United States, Indian carpets take the lead in the market, followed by China, Pakistan, and other countries. However, the Indian carpet industry faces competition from China, Nepal, and Pakistan.

According to a 2014 market research report on the global carpet industry, the demand for carpets and rugs in the United States is projected to increase by 4.5 percent annually, reaching an estimated US$16.2 billion by 2019. The residential market is expected to maintain high demand, while non-residential demand will primarily come from offices, commercial establishments, and institutions. The tufted carpets and rugs sector is anticipated to witness the fastest growth.

Key Markets and Export Destinations for India

Indian carpets find their way to more than 100 countries, with approximately 40 percent of exports landing in the United States. In 2013-14, India exported hand-made carpets worth US$1,037 million in total. Developed countries account for a significant share, with the United States and Germany alone making up 76 percent of total exports. Although the industry is export-oriented, it is also labor-intensive, providing employment opportunities to many. While there is a strong demand for Indian carpets in developed countries, the industry faces evolving consumer preferences, particularly in the domestic market.

Consumer Preferences and Future Prospects

Consumer preferences have evolved over time, with a growing inclination towards cotton carpets, which are both washable and budget-friendly. The e-commerce and home furnishing industries are experiencing significant growth. However, the future of the Indian carpet industry remains unpredictable. While there is substantial demand for fine silk carpets in the international market, there is a decrease in demand for exclusive carpets domestically. This has led the industry to shift towards modern and affordable carpets that are easy to maintain.

Indian handmade carpets are now competing with machine-made counterparts from developed nations. Bright and colorful cotton and silk carpets are in high demand, particularly in the United States. These carpets are produced with consumer preferences in mind. The construction industry in developing nations is booming, driving the demand for floor and wall coverings.

While hard floor coverings pose competition to carpets and rugs, it is expected that they will not significantly affect the carpets and rugs market. As various carpet segments, such as woven carpets and tufted carpets, experience rising demand, a favorable situation is expected for the carpet and rug industry in the future. Opportunities for the industry lie in adopting innovative technology and sustainable materials in the manufacturing process.

International Carpet Trade Fairs and Innovations

Participation in international trade fairs has been crucial for the Indian carpet industry. Innovations, creative designs, and new materials are showcased at such events, providing opportunities to connect with international leaders. A notable innovation includes self-cleaning carpets produced using nano-technology, which continuously cleans itself with energy from light.

Carpets Export Promotion Council

The Carpets Export Promotion Council (CEPC) serves as the apex body for exporters of carpets and floor coverings in India. It offers support to exporters through financial assistance, market expansion, dispute resolution, and organizing international events.

Carpet and rug preferences among US consumers

The North American market for carpets and rugs is poised for substantial growth, driven by a surge in consumer interest in interior design. Emerging trends such as smart homes and a revamp in home decor and real estate remodeling activities in the U.S. are propelling demand within the carpets and rugs industry.

For instance, the U.S. witnessed an unexpected 9.3% month-over-month increase in new house sales in March 2023, reaching a seasonally adjusted annualized rate of 683K, marking the highest level in a year and surpassing the initial forecast of 630K. Sales surged by 170.8% to 65K in the Northeast, 29.8% to 161K in the West, and 6% to 71K in the Midwest. However, they saw a 5.4% decline to 386K in the South. The median price of newly sold houses was $449,800, while the average sales price stood at $562,400, compared to $435,900 and $511,800, respectively, a year earlier. There were 432K houses left to sell, the lowest since April 2022, translating to a 7.6-month supply at the current sales rate.

In 2022, the Asia Pacific region secured the second-largest market share and is projected to exhibit a noteworthy compound annual growth rate (CAGR) in the forecast period. The regional market's expansion is attributed to increased construction projects in both commercial and residential sectors, coupled with the rise in disposable income. Carpets and rugs are recognized for their ability to transform spaces by adding comfort, warmth, and a cozy ambiance. Various types of rugs, such as bedroom rugs, living room rugs, shag rugs, office rugs, wool rugs, braided rugs, and other floor coverings, are favored in the Carpets and Rugs Market.

India stands as a global leader in handmade carpet production, both in terms of volume and value. The country's heritage in crafting handmade carpets is acknowledged worldwide, with a substantial share in global exports. In fact, a staggering 90% of the carpets manufactured in India find their way to international markets. Between April and November 2020, exports of handmade carpets from India totaled INR 64,407.19 crore (equivalent to USD 916.15 million). India's carpets are exported to more than 70 countries globally, with the United States, Germany, Canada, the United Kingdom, Australia, South Africa, France, Italy, Brazil, and others being major importers. The process of globalization is opening new avenues for the Indian carpet market in emerging economies.

Competitive Landscape in the USA

Prominent players in the Carpets and Rugs Market are making significant investments in research and development to expand their product offerings, which is poised to drive market growth and foster business development. Competitors in the carpets and rugs industry are introducing cost-effective products to gain a competitive edge and flourish in an increasingly fierce market landscape. Key companies in the carpets and rugs sector, including Mohawk Industries, Inc. (U.S.), Shaw Industries Group Inc. (U.S.), Genie Carpet Manufacturers (India), Royalty Carpet Cleaning & Flooring (U.S.), and Inter IKEA Systems B.V., are actively shaping the market.

For instance, Steelcase-owned Coalesse has collaborated with Spanish rug company Nanimarquina to launch a collection of handcrafted rugs tailored for both domestic and commercial applications. This partnership is expected to help sustain its leadership in the competitive market throughout the forecast period.

Indian and American consumer behavior in the carpet industry

There are several notable shifts in consumer behavior and the following are the key factors influencing these changes:

1. Increased home decor and remodeling in the U.S.

The surge in home decoration and remodeling activities in the U.S. is driving the demand for carpets and rugs. This suggests that American consumers are placing a higher value on enhancing their living spaces. Factors such as the desire for more comfortable and visually appealing homes have led to increased carpet and rug purchases. Additionally, the popularity of smart homes may also be influencing consumer choices in this regard.

2. Rising real estate industry in the U.S.

The unexpected increase in new house sales in the U.S., especially in the Northeast and West regions, indicates a growing real estate market. Consumers buying new homes often invest in interior decor, including carpets and rugs. This reflects a shift in consumer behavior toward a greater focus on home aesthetics and comfort.

3. Income levels and commercial construction in Asia Pacific

In the Asia Pacific region, the growth in disposable income and increasing construction activities in both commercial and residential sectors are significant drivers of carpet and rug demand. As consumers in this region experience higher income levels, they are more likely to invest in home improvement and decoration, including the purchase of carpets and rugs. The expansion of commercial spaces also contributes to the demand for these products.

4. Indian carpet exports

India's position as a leader in handmade carpet production and its substantial exports reflect a global consumer shift towards appreciating the quality and craftsmanship of Indian carpets. Factors such as the recognition of India's heritage in carpet-making, the availability of a wide range of designs, and competitive pricing have made Indian carpets popular among consumers worldwide.

5. Globalization and emerging markets

The data highlights that with the advent of globalization, new opportunities are opening up for the Indian carpet market in developing countries. This suggests a shift in consumer behavior in emerging markets, where consumers are increasingly valuing the aesthetic and cultural appeal of handmade carpets. Globalization has made these products more accessible to consumers in various parts of the world.

6. Competitive market and product innovation

In the competitive landscape, players in the carpet industry are investing in research and development to offer innovative and cost-effective products. This reflects a consumer demand for carpets and rugs that not only provide aesthetics but also offer value for money. Product innovation is likely to influence consumer preferences and drive market shifts.

Both the U.S. and Indian carpet markets are experiencing shifts in consumer behavior driven by factors such as increased focus on home decor and remodeling, rising income levels, and the appeal of handmade and culturally significant carpets. The competitive market is encouraging product innovation to meet evolving consumer preferences. These changes in consumer behavior are indicative of a broader trend toward valuing interior design and comfort in both mature and emerging markets in the carpet industry.

Traditional and Cultural Significance of Carpet Weaving in India

The rich tapestry of India's hand-knotted carpets and rugs is woven with a history dating back to around 985 CE. Known by various names such as alcatif, qali, dari, and shatranji, these masterpieces of craftsmanship have deep-rooted origins. Mahabalipuram, one of the oldest production centers in India, stands as a testament to this ancient art.

1. Historical emergence and Mughal patronage

Carpet usage in India is mentioned in historical records dating back to the 14th century. Cities like Daulatabad, Delhi, and Multan are noted for their early use of carpets. However, it was during the 16th century, under the patronage of the Mughal emperors, particularly during Akbar's reign, that these carpets rose to prominence. Royal workshops known as farrash-khanas played a crucial role in fostering this craft.

2. Craftsmanship and materials

Indian carpets are predominantly crafted from wool, while cotton forms the warp and weft. In some regions, such as Kashmir, silk is also employed. The roller-beam loom, a traditional tool, is widely used in crafting these carpets. Weavers use the two-knot or double-knot technique to secure knots at the carpet's end. The unique asymmetrical Persian knot, wherein a strand of yarn is tied around two adjacent warp threads, is the hallmark of Indian carpets, with the quality of the carpet determined by the type and number of knots.

3. Evolution and royal influence

The Mughal emperor Babur is credited with importing carpets from Turkey and Persia in the mid-14th century, while visuals from Humayun's ascent in 1532 showcase the use of decorative carpets. Gujarat emerged as a significant center for carpet production in the 15th and 16th centuries. Akbar's reign saw a renaissance of carpet weaving in India, with the establishment of dedicated Farrah-khanas in various locations.

4. Influences from Central Asia

Under Akbar's patronage, skilled carpet makers from Iran and Central Asia contributed new designs and techniques to Indian carpet weaving. These carpets drew inspiration from Persian counterparts and featured intricate floral motifs, intertwining vines, and depictions of fauna. Indian carpets were characterized by their relatively brighter colors, predominantly red, with occasional use of orange, yellow, and green dyes. The fine knotting was notable, with around 4424 knots per square inch.

5. Widespread impact

The influence of the Mughal era on the carpet industry led to innovations in style and design. This included the introduction of natural-looking flowering plants and rows against plain backdrops. However, evidence of carpet-making in the 17th century is scarce, suggesting a decline in royal patronage. Nevertheless, a few imperial workshops persisted.

6. Carpet trade and export

In the early 17th century, carpets became important trade commodities, with both coarse and silk carpets from India being exported. The Great Exhibition of 1851 in England prominently displayed Indian carpets, further boosting their demand. As trade with Europe grew, many carpet-making ventures shifted to India.

7. Rise of carpet-weaving centers

Trade with Europe in the 19th century increased the demand for Indian carpets. Private enterprises managed regional carpet-weaving centers in northern India. Additionally, convict labor in jail workshops contributed to carpet production. These workshops revitalized traditional designs and motifs, leading to a revival of traditional design in the 19th century.

8. Legacy and export-oriented Industry

India's extensive history of carpet design and craftsmanship has given rise to a multitude of carpet designs and techniques across the country. Today, the Indian carpet industry is primarily export-oriented, catering to markets around the world. Indian carpets and rugs are prized possessions and can be found in prestigious collections, including those at the Calico Museum of Textiles, Ahmedabad; Maharaja Sawai Ram Singh II Museum, Jaipur; the Victoria & Albert Museum, London; and the Metropolitan Museum of Art, New York.

Significance of Carpet Weaving in the USA

The U.S. carpet industry initially drew inspiration from the British system on a small scale. Operating primarily as a cottage industry, it was organized by agents who marketed the limited production. This continued until the first half of the 19th century. By 1830, the use of carpets gained popularity throughout the eastern U.S., leading to the establishment of factories in New England, New York, and Pennsylvania. However, the U.S. market was still dominated by British carpets.

To break free from this dominance, U.S. manufacturers began to push for the development of power equipment. In 1841, the first power loom emerged, and in 1876, the Axminster loom was invented. This innovation injected new life into the carpet industry, enabling a wide range of colors and designs while maintaining cost efficiency.

Loom widths also expanded significantly, shifting from the conventional 18, 27, or 36 inches (46, 69, or 91 centimeters) to the broader "broadloom," which typically measured 12, 15, or 18 feet (4, 5, or 6 meters). This change resulted in considerable cost savings in weaving and provided larger, seamless areas for carpet installation.

Post-World War II, the technique of needle tufting emerged, employing a prewoven backing for the fundamental structure. This method became the primary means of carpet production in the U.S. Some tufted carpet manufacturers even ventured into creating outdoor carpets and imitation lawns.

The Evolution of Smooth-Surfaced Floor Coverings

In 1860, Frederick Walton from Great Britain patented a process for manufacturing linoleum, marking the inception of widely used smooth-surfaced floor coverings. Initially, plain linoleum without intricate designs was popular, a trend that persisted until the mid-1930s when decorative linoleum came into vogue.

During the 1920s, the United States saw the development of dark-colored asphalt sheet and tile materials. These were crafted from mixtures of asbestos fiber, mineral fillers, and asphalt. While lighter-colored resins that did not contain asphalt became available over the next decade, the term "asphalt tile" still lingers in the U.S. for this type of flooring. In the U.K., "asphalt tile" referred to a different product, while the term "thermo-plastic tile" was applied to a similar British offering.

Vinyl asbestos tiles, which contained asbestos fibers, were introduced and showcased at the Chicago World's Fair in 1933, but due to resin shortages, mass production did not begin until 1948. Subsequently, vinyl, a newer composite material with a high content of polyvinyl chloride resins, was perfected. Post-World War II, the number and variety of smooth-surfaced floor coverings multiplied significantly, with plastics playing a crucial role in this expansion.

While traditional linoleum persisted, materials such as asphalt, cork, rubber, vinyl asbestos, and various types of vinyl gained popularity. A new development in the 1960s introduced a type of flooring applied directly to the area and allowed it to harden, with epoxy resins typically being used for this purpose.

Carpet manufacturing processes, technology, and innovations in the USA & India

The interior designing industry is evolving rapidly, and the carpet industry stands out as a dynamic and innovative player in this market. Over the years, the carpet industry has witnessed a series of revolutions, with the most recent being the integration of technology into its production processes. This technological infusion has given rise to contemporary trends that are shaping the industry.

1. Automation and efficiency

Technology has ushered in an era of automation within the carpet industry, significantly enhancing efficiency and cost-effectiveness. Automated processes have paved the way for the production of high-quality carpets at a faster pace and in larger quantities. This automation has allowed carpet manufacturers to meet the growing demand for carpets while simultaneously reducing production costs. In addition to automation, technology has boosted the industry's productivity by enabling the use of sophisticated software and analytics tools. These tools empower manufacturers to monitor manufacturing processes in real-time, identify bottlenecks or inefficiencies, and make necessary adjustments, ultimately reducing waste and enhancing overall efficiency.

2. Sustainability

The carpet industry has come under mounting pressure to adopt environmentally conscious practices. Thanks to technology, manufacturers can now create eco-friendly and sustainable carpets. This includes the use of recycled materials in carpet production, a practice that has gained popularity. Furthermore, technology has facilitated the development of new manufacturing procedures that minimize waste and reduce the environmental footprint of the carpet industry.

3. Design and customization

Technology's integration has had a profound impact on carpet design and customization. The advent of computer-aided design (CAD) software has unlocked the ability to create intricate patterns and designs that were previously challenging to achieve manually. This expansion of design options has allowed manufacturers to cater to a wider range of customer preferences. Moreover, technological advancements have empowered customers to personalize their carpets according to their exact specifications. Customers now have the freedom to customize carpets with diverse colors, patterns, and materials to align with their unique desires and tastes.

4. Smart carpets

Technology has given birth to the concept of smart carpets. These carpets are equipped with sensors and advanced technologies that enable them to serve a multitude of purposes. Some smart carpets can monitor the well-being of room occupants and detect accidents, such as falls. In the commercial sector, smart carpets can be used to monitor foot traffic and optimize space utilization. The development of smart carpets represents an exciting trend that has the potential to reshape how we interact with our homes and workspaces.

5. Machine Learning and Artificial Intelligence

The carpet industry has begun harnessing the power of machine learning and artificial intelligence (AI) to enhance carpet quality and reduce production costs. Machine learning algorithms can analyze the copious amounts of data generated during the manufacturing process, unveiling patterns and insights that can help optimize production. Manufacturers can utilize machine learning to forecast material requirements, optimize cutting patterns, and identify potential quality issues before they arise. AI-powered robots can take on repetitive tasks like carpet weaving, cutting, and finishing, freeing up human workers to focus on more complex responsibilities.

6. Digital Marketing and E-Commerce

The way carpet manufacturers market and sell their products has evolved significantly with technological advancements. E-commerce platforms have provided manufacturers with the means to reach a global audience, reducing the need for physical showrooms or stores. Digital marketing tools such as social media, search engine optimization, and pay-per-click advertising have enabled manufacturers to efficiently target specific demographics and reach potential customers. This has created new opportunities, especially for smaller producers, who can now compete effectively with industry giants.

7. Virtual Reality

Virtual Reality (VR) technology is making its presence felt in the carpet industry by offering customers immersive experiences. Consumers can don virtual reality headsets to visualize how various carpets would appear in their living spaces, facilitating more informed purchasing decisions. VR technology is also being used for training purposes, enabling manufacturers to train workers in complex tasks within a safe and controlled virtual environment.

8. Augmented Reality

Augmented Reality (AR) has also found its way into the carpet sector. Customers can use augmented reality technology to visualize how a carpet would look in their home before making a purchase. By simply scanning a room with their smartphones or tablets, they can virtually lay different carpets on the floor, allowing them to assess how various colors and patterns would complement their space. This technology has the potential to revolutionize the way customers shop for carpets, reducing the need for physical samples and showroom visits, and potentially lowering the rate of returns and exchanges.

9. Collaboration and innovation

Technology integration has facilitated increased collaboration and innovation within the carpet industry. Improved communication capabilities, such as video conferencing, screen sharing, and project management software, enable real-time communication among manufacturers, designers, architects, and other industry professionals. This has resulted in shorter product development cycles, enhanced collaboration among stakeholders, and increased innovation within the industry. Furthermore, it has erased geographical barriers, allowing manufacturers to collaborate with professionals from around the world.

10. Internet of Things (IoT)

The Internet of Things (IoT) is becoming increasingly essential in the carpet industry. IoT-enabled sensors and devices can be embedded in carpets to monitor factors like foot traffic, temperature, humidity, and air quality. This data can be leveraged to optimize maintenance schedules, detect quality issues, and enhance overall carpet performance. IoT-enabled carpets can also be integrated with smart home systems, granting homeowners the ability to control their carpets through voice commands or mobile apps. For instance, homeowners can adjust room temperature or lighting based on data collected by IoT sensors in their carpets.

11. 3D printing

3D printing technology is making its mark in the carpeting sector, enabling the creation of intricate designs and patterns that were previously challenging to achieve with traditional manufacturing methods. 3D printing allows for the customization of carpets to meet customers' demands and preferences. It also helps manufacturers reduce material waste and production costs by producing only the necessary amount of material, eliminating excess inventory.

12. Blockchain technology

Blockchain technology is being explored as a potential solution for transparency and traceability within the carpet industry's supply chain. Manufacturers can use blockchain to track the movement of raw materials and finished products from source to end consumer, ensuring ethical and sustainable practices are adhered to at every stage of the supply chain. Additionally, blockchain can aid in the prevention of counterfeit products entering the market, safeguarding manufacturers' reputations and ensuring customers receive authentic, high-quality products.

13. Innovation hubs

The integration of technology has led to the growth of innovation clusters within the carpet industry. These innovation centers bring together manufacturers, designers, and industry professionals to collaborate on ideas, develop new products, and explore emerging technologies. These hubs serve as a platform for manufacturers to connect with other industry stakeholders and gain access to the latest technologies and trends. Moreover, innovation hubs expedite the development of new products, reducing time-to-market and enhancing manufacturers' competitiveness.

Export and Import Trends

India stands proudly as the leading producer and exporter of handmade carpets and various floor coverings in terms of both value and volume. The nation boasts a diverse range of handmade carpets, spanning low, medium, and high-quality categories. These Indian handwoven carpets encompass Indo-Persian, silk, wool and silk, hand-tufted, Zeigler, and Kilim styles.

Major Carpet-Producing Regions in India

India's carpet industry thrives in several states, including Jammu & Kashmir, Himachal Pradesh, Haryana, Punjab, Madhya Pradesh, Rajasthan, Gujarat, Kerala, Andhra Pradesh, Telangana, Odisha, Uttar Pradesh, and the North-Eastern states. Seven distinctive carpet and durrie products have secured a geographical indication (GI) under Intellectual Property Rights (IPR). These include the Handmade Carpet of Bhadohi, Mirzapur Handmade Dhurrie, Kashmir Handmade Carpet, Navalgund Durrie, Ghazipur Wall hanging, Wrangle Durries, and Agra Durrie.

Export Trends

India takes pride in exporting silk, coir, jute, and handloom carpets and floor coverings. A remarkable 85-90% of the nation's carpet production is exported, making India the world's largest exporter in this domain. India is responsible for approximately 40% of the global export of handmade carpets. Remarkably, India's export of handmade carpets and other floor coverings registered an impressive growth of 19.5%, reaching USD 2.23 billion in 2021-22. Over the past few years, carpet exports from India have maintained a compound annual growth rate (CAGR) of 7%. Notably, in March 2022, the country's carpet exports amounted to USD 155 million, surpassing the USD 130.56 million recorded in February 2022. This robust growth in exports plays a crucial role in providing additional livelihood opportunities for artisans and weavers, especially those from marginalized sections of society, including farmers.

Among the various carpet types exported from India, handmade carpets such as woolen, rugs, druggets, durries, and cotton carpets constitute the largest share of exports. In the period from April 2022 to September 2022, India's carpet exports reached USD 710 million. In the 2021-22 fiscal year, India exported handmade carpets worth USD 1.51 billion, marking a substantial growth of 18.8%. Jute carpets and floor coverings accounted for USD 168.67 million in exports, contributing to 7.8% of the total exports. Additionally, India exported handloom carpets and floor coverings, coir carpets and floor coverings, and silk carpets, valued at USD 125.06 million, USD 113.15 million, and USD 10.62 million, respectively.

Export Destinations

India's carpets find their way to over 70 countries worldwide. Prominent importers of Indian carpets and floor coverings include the USA, Germany, the UK, Australia, the UAE, France, Sweden, the Netherlands, and Italy. The USA leads the pack as the largest importer, accounting for a staggering 57% of India's exports. In the period between April 2021 and March 2022, India exported handmade carpets and other floor coverings worth USD 1281.29 million to the USA, marking significant growth compared to USD 1063.37 million in the previous year. Germany and the UK are among the top three importers, with imports valued at USD 116.64 million and USD 110.31 million, respectively, in the 2021-22 fiscal year.

The diversification of China's carpet industry, from handmade to machine-made, offers a promising opportunity for Indian handmade carpet exporters. The Carpet Export Promotion Council (CEPC) has initiated the establishment of a warehouse in China to facilitate member exporters, a positive step in the right direction. Emerging markets in countries such as Brazil, Chile, Argentina, Norway, Sweden, Australia, and New Zealand hold the potential for substantial growth in India's carpet exports.

The USA remains a traditional export market for India's handmade carpets and floor coverings, and there is still significant growth potential, despite having crossed the USD 1.0 billion mark in 2020-21.

Government Initiatives

The Indian government plays an active role in promoting handmade carpets and supporting exporters. India regularly hosts domestic and international trade events and expositions to showcase handmade carpets and provide a platform for exporters. To encourage handloom weavers and artisans, the government offers various facilities and subsidies. The Ministry of Textiles of India has signed a memorandum of understanding (MOU) with the Ministry of Skill Development and Entrepreneurship for the skill development of handloom weavers. Moreover, subsidized loans and setup subsidies for handlooms are provided. The Rebate of State and Central Taxes and Levies (RoSCTL) scheme, effective from March 2019 and extended until March 31, 2024, aims to enhance the textile sector's competitiveness in the international market.

The government has also undertaken initiatives to promote the export of handicrafts, including organizing standard international marketing events and virtual marketing events. Skill development programs and specialized training centers have been established to train artisans and weavers. Furthermore, Asia's largest India Carpet Expo (ICE) in March 2022 brought together 257 overseas buyers from 48 nations, highlighting the government's commitment to the Indian Handmade Carpet Industry.

Government Body

The Carpet Export Promotion Council India (CEPC), formed in 1982 by the Ministry of Textiles, plays a crucial role in promoting handmade carpets, rugs, and other floor coverings. CEPC's activities include organizing fairs and exhibitions as part of the Market Access Initiative (MAI), liaising with the government, protecting exporters' interests in global markets, conducting trade meetings and surveys, and providing training and information dissemination.

Carpet Export and Import Trends between India and the USA

India is the second-largest exporter of carpets and rugs in the world, after China. The USA is the largest importer of carpets and rugs from India. In 2021-22, India exported carpets and rugs worth USD 1281.29 million to the USA.

The value of carpet exports from India to the USA has increased steadily in recent years. In 2017-18, India exported carpets and rugs worth USD 939.58 million to the USA. This increased to USD 1063.37 million in 2018-19, USD 1166.32 million in 2019-20, and USD 1281.29 million in 2021-22.

The main types of carpets exported from India to the USA are handmade carpets, machine-made carpets, and tufted carpets. Handmade carpets account for the majority of carpet exports from India to the USA.

Carpet Imports from the USA to India

The USA is a major exporter of carpets and rugs to India. In 2021-22, India imported carpets and rugs worth USD 168.67 million from the USA.

The value of carpet imports from the USA to India has fluctuated in recent years. In 2017-18, India imported carpets and rugs worth USD 136.28 million from the USA. This decreased to USD 120.05 million in 2018-19, increased to USD 148.44 million in 2019-20, and decreased to USD 168.67 million in 2021-22.

The main types of carpets imported from the USA to India are machine-made carpets and tufted carpets.

Overall Trends

The overall trend of carpet export and import between India and the USA is positive. Carpet exports from India to the USA have been increasing steadily in recent years, while carpet imports from the USA to India have remained relatively stable.

This trend is likely to continue in the coming years, as the USA is a growing market for Indian carpets and rugs. The Indian carpet industry is also investing in new technologies and product development to meet the demands of the US market.

Carpet Industry Regulations related to Environmental Sustainability and Labor Practices in India and the US

Indian and United States government regulations related to environmental sustainability and labor practices in the carpet industry are as follows:

1. Environmental regulations in India

The Indian government has a number of environmental regulations in place to protect the environment from pollution caused by the carpet industry.

These regulations include the following:

1. The Water (Prevention and Control of Pollution) Act, 1974: This act aims to prevent and control water pollution from all sources, including the carpet industry.
2. The Air (Prevention and Control of Pollution) Act, 1981: This act aims to prevent and control air pollution from all sources, including the carpet industry.
3. The Environment (Protection) Act, 1986: This act provides a framework for the protection and improvement of the environment. It also gives the government the power to take action against polluters.

2. Labor regulations in India

The Indian government has a number of labor regulations in place to protect the rights of workers in the carpet industry.

These regulations include the following:

1. The Child Labour (Prohibition and Regulation) Act, 1986: This act prohibits the employment of children below the age of 14 years in any industry, including the carpet industry.
2. The Bonded Labour System (Abolition) Act, 1976: This act prohibits the bonded labor system, which is a form of slavery.
3. The Minimum Wages Act, 1948: This act sets minimum wages for workers in various industries, including the carpet industry.

3. Environmental regulations in the United States

The United States government has a number of environmental regulations in place to protect the environment from pollution caused by the carpet industry. These regulations include the following:

 

• The Clean Air Act: This act aims to protect the public from air pollution and to improve air quality. It sets standards for air pollutants and requires industries to meet these standards.
• The Clean Water Act: This act aims to protect the nation's waters from pollution. It sets standards for water quality and requires industries to meet these standards. 
• The Resource Conservation and Recovery Act (RCRA): This act regulates the handling, storage, and disposal of hazardous waste. It requires industries to manage hazardous waste in a way that protects the environment and human health.

. Labor regulations in the US

The United States government has a number of labor regulations in place to protect the rights of workers in the carpet industry. These regulations include the following:

• The Fair Labor Standards Act (FLSA): This act sets minimum wage, overtime pay, and child labor standards for workers in the United States.
• The Occupational Safety and Health Act (OSHA): This act requires employers to provide safe and healthy workplaces for their employees. OSHA sets standards for workplace safety and health and requires employers to comply with these standards.

Challenges Faced by the Indian Carpet Industry

From raw material scarcity to production hurdles, marketing complications, and finishing issues, the handmade carpet industry faces a myriad of obstacles. Let's delve into the critical problems that impede the progress of this esteemed industry and propose suggestions for overcoming these challenges.

1. Problems related to raw materials

1. Scarcity of wool fibers: Wool serves as the primary raw material for the handmade carpet industry, yet its availability is a recurring concern. In India, despite being the third-largest sheep population country globally, the annual wool yield per sheep is considerably lower than the world average. The quantity of locally produced wool is insufficient to meet the demand of the handmade carpet industry, fulfilling only a fraction of its requirements.
2. High cost of quality material: The wool produced in India is often of coarse quality, falling short of international standards. To compensate for this, wool must be imported from countries like New Zealand, increasing production costs due to import expenses and blending processes.
3. Supply delays and discontinuity: The procurement of wool fibers involves multiple tiers, leading to delays in material supply. Discontinuity arises because small-scale manufacturers require modest quantities of wool, making it uneconomical for suppliers to fulfill their needs.

2. Problems related to production

1. Labor shortages: A significant shortage of skilled and unskilled labor plagues the carpet industry due to low wages and associated health issues. The demanding nature of carpet weaving results in worker discomfort and health problems, deterring young individuals from pursuing this profession.
2. Lack of electricity: Handmade carpet weaving requires precision work, with fine knots and detailed color identification. In rural areas where the industry is often situated, inadequate electricity supply leads to insufficient lighting and hampers production.
3. Managerial skills gap: Small business owners, who dominate the carpet industry, often lack formal managerial training. Their limited expertise hinders efficient resource utilization and competitiveness against large-scale manufacturers.
4. Lack of technological integration: The industry tends to resist technological advancements due to a lack of education and awareness, despite the development of new tools and equipment by various institutions.

3. Problems during finishing

1. Color bleeding: Dye bleeding occurs when colored fibers lose dye when wet. Poor dye quality and suboptimal dyeing conditions lead to this issue. 
2. Fringe color change: Color change in fringes during cleaning is a common occurrence, often resulting from fugitive dyes from the wet carpet being absorbed by the fringes. 
3. Bleeding of weaver markings: Pattern markings made on the warp by the weaver may bleed during cleaning, as the markings are often not colorfast.
4. Felting and low luster: Pressure applied during washing causes felting and low luster issues, reducing the appeal of the carpets.

Challenges Faced by the US Carpet Industry

When it comes to post-consumer carpets, there are various treatment options available. The lifespan of a carpet generally ranges from 7 to 20 years, depending on factors such as usage intensity, wear and tear, and changes in ownership or purpose of use. In addressing the end-of-life phase for carpets, there are alternatives to the common practice of landfilling or incineration. These alternatives aim to reduce environmental impacts and promote a circular approach to carpet management, encompassing reuse, refurbishment, and recycling.

1. Reusing carpets

Extending the life of carpets through reuse offers multiple advantages. By keeping products in use for longer periods, the need for new production is reduced, resulting in resource conservation and waste reduction. Even when carpets are reused, it is crucial for them to be recyclable to maintain a closed-loop system. In the United States, approximately 13 million pounds of post-consumer carpets were reused in 2015, with California accounting for 602,000 pounds of that total. However, this represents less than 0.2% of the 345 million pounds of discarded carpets in California. Companies like Milliken and Interface accept the return of their carpet tiles for refurbishment, although the quality of post-consumer carpets can limit the frequency of reuse.

2. Recycling as an option

Currently, only a small portion (about 5%) of used carpets in the U.S. are recycled. Of that, just 13% is converted back into carpet face fiber, and 8% into backing. Therefore, only 1% of discarded carpets are actually recycled into carpets within a closed-loop system. The recyclability of a carpet primarily depends on its design. Some carpets are fully recyclable when the face fiber can be separated from the backing, while others are only partially recyclable, with either the face fibers or backing being recycled, while the rest is repurposed or disposed of in landfills or incinerators. The ability to recycle carpets is often hindered by the way they are constructed, particularly the bonding of face fibers. The variety of face fiber materials, such as nylon, polypropylene (PP), and PET, also affects recyclability. In many cases, carpets containing more than one type of face fiber material may be downcycled due to their lack of recyclability.

3. Environmental implications of incineration

Approximately 6% of used carpets in the U.S. are incinerated in conventional municipal solid waste incinerators and cement kilns, resulting in 206 million pounds of incinerated carpet in 2015. This practice raises environmental concerns, as incineration releases harmful chemicals, including dioxins, into the air. These chemicals can have severe health impacts and contribute to pollution. Cement kilns that burn waste pose additional challenges, as they are subject to less regulation than traditional incinerators, potentially leading to more emissions. Incineration is also less environmentally friendly in terms of carbon emissions when compared to recycling.

4. Landfilling and its impact

A significant portion, 89%, of post-consumer carpets in the U.S. end up in landfills, accounting for about 3.5% of the total waste disposed of in the country. Synthetic carpets biodegrade slowly in landfills, produce methane emissions, occupy valuable space, and may release hazardous substances. In a true circular economy, materials and products should rarely end up in landfills.

5. Design as the key to circular carpet management

Design plays a pivotal role in the transition to a circular economy for carpets. It largely determines a product's environmental impact, from material selection to recycling potential. Design choices are critical in creating recyclable carpets. Materials that are not separable and materials mixed with fillers pose challenges to recycling. Reclaimed PET fiber carpets, while promoted as environmentally friendly, often cannot be economically recycled back into fibers, turning them into a dead-end road for closed-loop systems.

6. Improving collection systems for recycling

Efficient collection systems are essential for the success of carpet recycling. Carpets should be collected separately to prevent contamination and maintain their quality for recycling. Various collection methods are employed, including sorting from general waste, collection at commercial and industrial sites, and take-back programs offered by manufacturers.

Citations

1. https://eh.net/encyclopedia/a-history-of-the-u-s-carpet-industry/
2. https://www.mordorintelligence.com/industry-reports/india-carpets-and-rugs-market
3. https://www.custommarketinsights.com/report/us-carpets-and-rugs-market/#:~:text=As%20per%20the%20current%20market,to%20reach%20USD%2050.56%20Billion.
4. https://yourstory.com/smbstory/made-in-india-carpet-manufacturer-companies-jaipur-rugs-kaleen
5. https://www.fibre2fashion.com/industry-article/7587/aesthetic-touch-of-indian-carpets
6. https://www.maximizemarketresearch.com/market-report/carpets-and-rugs-market/187345/
7. https://mapacademy.io/article/carpet-and-rug-weaving-in-india/#:~:text=The%20carpets%20are%20woven%20by,also%20feature%20representations%20of%20landscapes.
8. https://www.britannica.com/technology/floor-covering/Carpet-and-rug-weaving